Canadian Northern Economic Development Agency (CanNor) - 2017-18 Departmental Results Report

Minister’s message

I am pleased to present the 2017-18 Departmental Results Report for the Canadian Northern Economic Development Agency (CanNor).

Over the past year, through integrated work across the various organizations of the Innovation, Science and Economic Development Portfolio, the Government of Canada worked very hard to improve Canada's global competitiveness while creating jobs, nurturing growth and strengthening our country's middle class.

In 2017-18, the Portfolio continued to implement the Innovation and Skills Plan to promote innovation and science, including support for scientific research and the commercialization of research and ideas. The Plan also encourages Canadian small businesses to grow, scale-up, and become more productive, more innovative and more export-oriented. An important area of this work included promoting increased tourism in Canada and the creation of new opportunities in our tourism sector. The Plan's overarching aim to position Canada as an innovation leader has been the driving focus of the Portfolio's programs.

CanNor advocates for the territories and supports innovative opportunities that help build a sustainable and diversified economy across the territories, and provides support to Indigenous groups to take advantage of economic opportunities. Its Northern Projects Management office provides pathfinder services and supports efficient and transparent environmental assessment processes in the territories. In 2017-18, CanNor's work to support the Innovation and Skills Plan saw the creation of the first innovation hub in the territories. Through Budget 2018, CanNor received ongoing funding for its key economic development program, which will help spur economic development across the territories.

Through deep collaborations and inclusive partnerships, the Innovation, Science and Economic Development Portfolio organizations have embarked on a shared journey to stronger, cleaner and more inclusive economic competitiveness that benefits all Canadians. This report documents the contributions that CanNor is making towards this important work.

Results at a glance

In 2017-18, to contribute to developing a diversified, sustainable, and dynamic economy across Canada's three territories, CanNor worked closely with federal, territorial, municipal, community, Indigenous and private sector partners. CanNor's areas of focus included the following:

1. Support the implementation of the Innovation and Skills Plan

CanNor supported, through over $1.5 million in Strategic Investments Northern Economic Development (SINED) funding, the creation of the Yukon Innovation Hub, which will bring business and industry, post-secondary institutions and public supports together to create a dynamic space that promotes an entrepreneurial culture of innovation and commercialization. In addition, approximately $6 million was invested across the territories to accelerate the development and deployment of clean technologies. Finally, CanNor provided $4.5 million, through the Northern Adult Basic Education Program (NABEP), to support adult basic education programming offered by the territorial colleges.

2. Advancing Northern Economic Development

In order to support a diversified and growing economy, CanNor made investments to encourage development of sectors such as tourism, fisheries, mining, arts and culture, as well as supporting Indigenous community economic and business development. For instance, as part of Canada's New Tourism Vision's commitment to help develop tourism in remote areas, CanNor invested $2.4 million to support tourism related projects, including for domestic and international marketing and expansion of tourism product offerings. For example, funding was provided for the expansion of the Kayutak Community Centre in Ulukhaktok, Northwest Territories, which provides services for tourist activities, such as accommodating cruise ship tourists and showcasing cultural artifacts.

Investments were also made to assist in the expansion of commercial fisheries in the territories. For example, CanNor provided funding to expand and enhance the Nunavut Fisheries and Marine Training Consortium's training facility in Iqaluit, Nunavut. This will increase the number of northern professional marine graduates able to enter the growing fisheries and marine sectors.

3. Advancing Major Projects Across the North

Through the NPMO, CanNor continued to support efficient and transparent environmental assessment processes for proposed major projects in the territories – from coordination of federal regulatory departments, to environmental assessment advisory support and Crown consultation coordination. In 2017-18, NPMO provided advice and support to over 100 clients. In addition, two projects were finalized and approved, representing a capital investment of approximately $877 million and forecasting 1,638 jobs when completed.

For more information on CanNor's plans, priorities and results achieved, see the "Results: what we achieved" section of this report.

Raison d'être, mandate and role: who we are and what we do

Operating context and key risks

Results: what we achieved

Analysis of trends in spending and human resources

Actual expenditures

Text description of the Departmental spending trend graph

This spending trend graph demonstrates total spending, voted spending, statutory spending, and anticipated sunset programs from 2015-16 to 2020-21:

• In 2015-16, total spending was $46,948,420 of which $45,608,819 was voted and $1,339,601 was statutory.
• In 2016-17, total spending was $53,639,049 of which $51,903,360 was voted and $1,735,689 was statutory.
• In 2017-18, total funding available is $54,420,053 of which $33,761,764 is voted, $1,234,750 is statutory and $19,423,539 is anticipated to sunset.
• In 2018-19, total funding available is $49,632,624 of which $48,050,153 is voted, $1,582,471 is statutory.
• In 2019-20, total funding available is $49,762,727 of which $41,187,099 is voted, $1,582,471 is statutory and $6,993,157 is anticipated to sunset.
• In 2020-21, total funding available is $41,679,448 of which $40,473,852 is voted, $1,205,596 is statutory.

Between 2015-16 and 2016-17, actual spending increased by $6.7 million, consisting of new funding for CIP-150 ($6.4 million), offset by decreased final year funding for the Centre for Northern Innovation in Mining ($1.3 million), as well as a decrease in NPMO funding of $370,000. Additional changes reflect increased spending on transfer payments for existing programs and operating costs.

Planned Spending in 2018-19 and 2019-20 has been adjusted to reflect the renewal of SINED in Budget 2018. In 2020-21, planned spending decreases due to the sunsetting of NABEP ($4.9 million) and NPMO ($2.1 million). Decisions regarding sunsetting programs will be reflected in the Agency's future budget and estimate documents.

Budgetary performance summary for Programs and Internal Services (dollars)

Programs and Internal Services	2017-18 Main Estimates	2017-18 Planned Spending	2018-19 Planned Spending	2019-20 Planned Spending	2017-18 Total authorities available for use	2017-18 Actual spending (authorities used)	2016-17 Actual spending (authorities used)	2015-16 Actual spending (authorities used)
Economic Development	39,880,184	39,880,184	43,653,752*	43,783,855*	44,999,877	44,159,717	43,349,264	36,670,762
Policy and Alignment	4,222,127	4,222,127	N/A*	N/A*	4,408,658	3,780,871	3,686,597	3,949,912
Subtotal	44,102,311	44,102,311	43,653,752	43,783,855	49,408,535	47,940,588	47,035,861	40,620,674
Internal Services	5,978,872	5,978,872	5,978,872	5,978,872	6,098,165	6,479,465	6,603,188	6,327,746
Total	50,081,183	50,081,183	49,632,624	49,762,727	55,506,700	54,420,053	53,639,049	46,948,420
*For 2018-19 and future years, CanNor will be reporting under the new Departmental Results Framework. Planned spending under Economic Development and Policy and Alignment programs will be reported on under a single core responsibility: Economic Development in the Territories.

2017-18 planned spending does not include $4.9 million for the renewal of NABEP, provided through Supplementary Estimates (B) 2017-18.

Planned spending in 2018-19 and 2019-20 includes $20 million per year for the renewal of northern economic development programming further to Budget 2018.

Supplementary information

Appendix: definitions

appropriation (crédit)
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires)
Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

Departmental Plan (plan ministériel)
A report on the plans and expected performance of an appropriated department over a three-year period. Departmental Plans are tabled in Parliament each spring.

Departmental Results Report (rapport sur les résultats ministériels)
A report on an appropriated department's actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

evaluation (évaluation)
In the Government of Canada, the systematic and neutral collection and analysis of evidence to judge merit, worth or value. Evaluation informs decision making, improvements, innovation and accountability. Evaluations typically focus on programs, policies and priorities and examine questions related to relevance, effectiveness and efficiency. Depending on user needs, however, evaluations can also examine other units, themes and issues, including alternatives to existing interventions. Evaluations generally employ social science research methods.

experimentation (expérimentation)
Activities that seek to explore, test and compare the effects and impacts of policies, interventions and approaches, to inform evidence-based decision-making, by learning what works and what does not.

full-time equivalent (équivalent temps plein)
A measure of the extent to which an employee represents a full person-year charge against a departmental budget. Full-time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.

gender-based analysis plus (GBA+) (analyse comparative entre les sexes plus [ACS+])
An analytical approach used to assess how diverse groups of women, men and gender-diverse people may experience policies, programs and initiatives. The "plus" in GBA+ acknowledges that the gender-based analysis goes beyond biological (sex) and socio-cultural (gender) differences. We all have multiple identity factors that intersect to make us who we are; GBA+ considers many other identity factors, such as race, ethnicity, religion, age, and mental or physical disability. Examples of GBA+ processes include using data disaggregated by sex, gender and other intersecting identity factors in performance analysis, and identifying any impacts of the program on diverse groups of people, with a view to adjusting these initiatives to make them more inclusive.

government-wide priorities (priorités pangouvernementales)
For the purpose of the 2017-18 Departmental Results Report, those high-level themes outlining the government's agenda in the 2015 Speech from the Throne, namely: Growth for the Middle Class; Open and Transparent Government; A Clean Environment and a Strong Economy; Diversity is Canada's Strength; and Security and Opportunity.

horizontal initiative (initiative horizontale)
An initiative where two or more departments are given funding to pursue a shared outcome, often linked to a government priority.

Management, Resources and Results Structure (structure de gestion, des ressources et des résultats)
A comprehensive framework that consists of an organization's inventory of programs, resources, results, performance indicators and governance information. Programs and results are depicted in their hierarchical relationship to each other and to the Strategic Outcome(s) to which they contribute. The Management, Resources and Results Structure is developed from the Program Alignment Architecture.

non-budgetary expenditures (dépenses non budgétaires)
Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance (rendement)
What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.

performance indicator (indicateur de rendement)
A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

performance reporting (production de rapports sur le rendement)
The process of communicating evidence-based performance information. Performance reporting supports decision making, accountability and transparency.

plan (plan)
The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.

planned spending (dépenses prévues)
For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts that receive Treasury Board approval by February 1. Therefore, planned spending may include amounts incremental to planned expenditures presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

priority (priorité)
A plan or project that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired Strategic Outcome(s) or Departmental Results.

program (programme)
A group of related resource inputs and activities that are managed to meet specific needs and to achieve intended results and that are treated as a budgetary unit.

Program Alignment Architecture (architecture d'alignement des programmes)
A structured inventory of an organization's programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.

result (résultat)
An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization's influence.

statutory expenditures (dépenses législatives)
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

Strategic Outcome (résultat stratégique)
A long-term and enduring benefit to Canadians that is linked to the organization's mandate, vision and core functions.

sunset program (programme temporisé)
A time-limited program that does not have an ongoing funding and policy authority. When the program is set to expire, a decision must be made whether to continue the program. In the case of a renewal, the decision specifies the scope, funding level and duration.

target (cible)
A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures (dépenses votées)
Expenditures that Parliament approves annually through an Appropriation Act. The Vote wording becomes the governing conditions under which these expenditures may be made.